Foreign bond investment in Japan recorded inflows of ¥382.9 billion for the week ending January 26, marking an improvement from the previous week’s outflows of ¥-43.5 billion (revised from ¥-48.0 billion). However, the figure remains significantly below the peak inflows of ¥1.689 trillion observed earlier in January. Similarly, foreign investment in Japanese stocks rebounded to ¥720.3 billion for the week, up from the previous week’s ¥287 billion (revised from ¥286.7 billion) but still considerably lower than January’s peak of ¥1.202 trillion.
Market response was noted in the USD/JPY pair, which experienced a modest uptick, reaching the 147.00 handle as Thursday’s trading session commenced. The movement followed the previous day’s activity influenced by the US Federal Reserve (Fed) and comments from Fed Chairman Jerome Powell.
Regarding foreign investment in Japanese stocks and bonds, this data, released by the Ministry of Finance, pertains to bonds issued in the domestic market by foreign entities in the domestic currency. The report, excluding Bank of Japan data, outlines flows from the public sector. The net data reflects the difference between capital inflow and outflow. A positive difference signifies net sales of foreign securities by residents (capital inflow), while a negative difference indicates net purchases of foreign securities by residents (capital outflow).